I was speaking with a potential Fractional CMO client last week and it occurred to me that not everyone – especially not everyone engaged in starting a business – understands the critically important role that positioning and differentiation play in the success of a brand, regardless of whether it’s a product or service.
I thought it might help to explain things in overly-simplistic terms. Not because it’s difficult to understand – on the contrary, because it really is a simple concept. Of course, like many concepts, executing it is the hard part. But we’ll get to that later.
So, without further ado, here is the simplified, easy-to-understand, nothing rocket-science-about-it guide to positioning and differentiation.
1. There Are People in the World.
All kinds of people. Moms over 50, Divorced dads with three kids and two mortgages, business owners looking to hand over the reins, fast-food clerks looking for a better way to get by.
2. All People Have Problems.
Whether it’s lack of time, health issues, a broken A/C unit, or a lawn that needs mowing, we all have challenges in life. They’re not all big huge things. But they’re things nevertheless, and they’re problems that need solving. Even if solving it is mowing the damn lawn yourself.
3. Products and Services Solve Those Problems.
Doctors, HVAC technicians, delivery services, and landscapers exist as solutions to some of life’s problems.
4. Some Products and Services Solve Certain Problems Better than Others.
Podiatrists solve foot issues, surgeons perform knee replacements, and arborists trim that sagging tree branch that’s been hitting you in the head every time you mow your lawn.
5. The Most Successful Products and Services Solve Problems in Meaningfully Different Ways.
The Podiatrist has all five-star reviews and is in your insurance network. The knee surgeon uses a new, minimally-invasive technique that reduces recovery time. The arborist has an advanced degree in botany.
6. You Want to Be One of those Successful Products and Services.
How are you going to solve the problem in a meaningfully different way? Maybe it’s your special technology. Maybe it’s your commitment to service. Or perhaps it’s your world-famous chicken fried steak recipe (hit me up if so!).
Whatever it is, that needs to be embodied in your brand, your communications, your website, your email signature, your Instagram feed, and your elevator pitch.
7. Differentiation and Positioning are How You Accomplish That Goal.
Differentiation is the active process of finding meaningfully different ways to build and deliver your product or service.
Positioning is the manner in which you “get credit” for that differentiation. Positioning is also a way to manufacture a meaningful difference in the mind of the consumer, in the absence of a real point of difference. You may have seen some Mad Men episodes talking about pre-empting (“toasted tobacco”) a commodity (a product with no point of difference from its competitors other than price).
I prefer differentiation. You should too! It’s never too late to find meaningful ways to solve problems better than your competitors.